Marketwatch: The Hamptons

A healthy end-of-year market in the Hamptons

The Hamptons real estate market breezed through the election and is ready for the New Year, real estate agents say. Though numbers from this quarter have yet to be published, recent data showed that the fall started strong on the South Fork. Douglas Elliman reported $1,537,500 for its median sales price, an 8.5% increase from that quarter in 2023. Closings were also up, with 393, a 36% hike from last year — up 8.5% year-over-year. Corcoran Group saw a third consecutive annual decline in closings but still noted a record-high median price of $2,175,000.

While the market once routinely felt sleepy for the winter, that’s no longer the case, said Tony Cerio, an associate broker with Brown Harris Stevens. “We’re a year-round business now,” he said. “There are people here all the time.”

The fall market
Whatever grip November 5th had on buyers was released in the weeks following, said Paul Brennan, an associate broker with Douglas Elliman. “We’ve had a number of closings, so you’re not hearing me complain, which is one of my natural states,” he chuckled about the season. “Now you know whether you want to buy something and whether something’s going to increase in value with the stock market.”

Brennan’s most notable recent sales included the 34-acre Rosewood Farm Estate in Southampton, which sold for $18,400,000, and 9 Hither Lane in East Hampton, which actor Sylvester Stallone purchased for $24,900,000.

Cindy Shea, associate broker and senior global real estate advisor with Sotheby’s International Realty, took note when an exclusive modern style listing quickly went into contract close to the asking price after receiving multiple second visits. The buyer’s agent had called Shea two hours after the listing went live, she said. “Why? Because a well-priced home will be immediately noticed by buyers,” Shea explained.

Where to look
Lesser-known areas like Quogue and Water Mill are gaining popularity. According to Corcoran’s third-quarter report, the former had the largest increase in closings for the third straight quarter and a 58% spike year-over-year. Water Mill’s median price nearly doubled from last year to $5,700,000, the brokerage found.

“In Hampton Bays you get a great bang for your buck and the Springs in East Hampton is what we consider the last frontier,” said Cerio. “The Springs are really beautiful and untouched in a lot of spots, and you’re close to the Village, ocean beaches, Montauk and Amagansett,” he continued. However, “right now, people are scooping up things as fast as you can speak and the prices in the Springs are going up,” he warned.

“If you’re a first-time buyer with a $1,000,000 budget or so looking to get into the market,” Brennan suggests East Quogue and North Sea. “They sort of haven’t been discovered, so to speak,” he said.

Tips for winter
When asked for a tip for Hamptons buyers, Brennan had one: “Write the check.” Don’t be “one of those people who say the market is too high,” he advised. The market keeps rising, partially due to limited inventory, leaving those buyers repeating the phrase the following year. “If they bought the first time they said it was too high, they’d be OK,” he said.

“If you come out here and see something you like and it’s in your price point, do not think about it; buy the property,” Cerio agreed. “If you don’t, someone else will.” As for sellers, he added that the key is realistically pricing your home.

But before you sell your home, be sure to have somewhere else to go first, Brennan reminded. “You’re either going to Florida and getting out of this market, or you’re going to trade up,” he added. “It’s very difficult to replace what you have.”